Reliance Industries to commission MJ gas condensate field by year end

25 Oct 2022 , 09:18 AM

By the year’s end, Reliance Industries Ltd. will put into operation its deepwater MJ gas condensate production in Bay of Bengal block KG-D6, bringing its natural gas output to 30% of India’s total.

At an investor call following the release of the company’s second-quarter earnings, Sanjay Roy, senior vice-president for exploration and production, Reliance Industries Ltd, stated that the MJ gas condensate field project was “pretty much on track” for the first gas production by the end of the year.

The third and final discovery being developed in the eastern offshore block by Reliance and its partner bp is MJ. To start manufacturing, the two will deploy a floating production system in the Bay of Bengal.

“The installation campaign offshore is now over. The subsea production system has thus been put in place. Currently, the Phase-II drilling and completion campaign is under way, and after completing one well, we expect to finish seven wells “Roy said.

The FPSO Ruby will move to the field’s position on the Krishna Godavari basin Block for hook-up, offshore testing, pre-commissioning, and commissioning operations after acquiring the required approvals and loading of materials.

R-Cluster, Satellite Cluster, and MJ are three independent development projects in which Reliance and bp are investing around $5 billion. By 2023, these projects are anticipated to produce over 30 million standard cubic metres of natural gas per day.

While the Satellite Cluster went online in April of last year, R-Cluster began manufacturing in December 2020. The Satellite Cluster will produce a maximum of 6 mmscmd of gas, compared to the R-plateau Cluster’s output of approximately 12.9 mmscmd.

According to Roy, the combined gas output from R-Cluster and Satellite Cluster was over 19 mmscmd from July to September.

19 gas discoveries have been made by Reliance so far in the KG-D6 block. The two largest of these, D-1 and D-3, were placed into production in April 2009, while MA, the block’s sole oilfield, was put into production in September 2008.

The MA field stopped producing in 2019, but the D-1 and D-3 fields stopped producing in February 2020. In order to start production on other finds, the government has either demanded their surrender or taken them away. The D1-D3 gas fields are located roughly 2000 metres below MJ’s reservoirs.

KG-D6 is operated by Reliance to the tune of 66.67%, with bp owning the remaining 33.33%.

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